Chinese main stock index extended its rise to record levels on Thursday as bullish retail investors shrugged off growing concern among some institutions that the market had climbed dangerously high. The Shanghai Composite Index ended up 0.91 percent at 4,049.701 points, off an intra-day high of 4,072.138.
On Wednesday it surged 1.60 percent to break 4,000 points for the first time. Turnover in Shanghai A shares was very heavy at 204.3 billion yuan ($26.6 billion), though down from Wednesday's record 250.6 billion yuan. Gainers outnumbered losers by 507 to 347.
The index is up 51 percent so far this year and many analysts think any extended climb above 4,000 could prompt authorities to act to cool the market. Central Bank Governor Zhou Xiaochuan said that last weekend he was concerned about a stock bubble.
Traders noted signs that some local and foreign institutional investors were slowing fresh stock purchases or even reducing their holdings slightly. The chief investment officer of China Life Insurance Co, the country's top life insurer, said on Wednesday he had become "very cautious" about buying stocks. Late last month, China's national pension fund said it was cutting its exposure.
Steel and petrochemical shares outperformed on Thursday while banks, which had led Wednesday's gains, were sluggish. Baoshan Iron & Steel, China's biggest steel mill, surged 6.01 percent to 12.70 yuan. Leading oil refiner Sinopec climbed 5.46 percent to 12.74 yuan.
China Eastern Airlines rose its 10 percent daily limit for the second straight day to 8.23 yuan. Chinese state media said on Thursday that the airline was in final talks to sell a strategic stake to Singapore Airlines, although the talks had been known for months and the reports contained nothing substantially new.
Telecom giant China Unicom, which gained 10 percent on Wednesday, rose a further 2.05 percent to 6.48 yuan and was the most active stock. Traders cited continued speculation that its group might be restructured this year.
Comments
Comments are closed.